Corporate finance is that field of finance which deals with the capital structure present within organizations and is related to the various sources of funding. Any person working in the field of corporate finance is mainly responsible for finding ways to maximize the shareholder value and is a field that is a little different from managerial finance. Infact, in larger corporations, corporate finance may be treated as a separate department from managerial finance. If you want to understand the pyramid of jobs in this field, then the following given corporate finance job hierarchy will prove useful for you
CFO or Chief Finance Officer
The position of CFO is the topmost and most powerful position within corporate finance and is also the one with maximum responsibilities. Any corporate finance company has all the other job positions under the position of the CFO and the following is the list of departments functioning under the CFO
A) The FP&A Department
This is that department of a corporate finance company which stands for financial planning and analysis and in short means ‘management accounting’. This department is responsible for the loss or profit of the company and works towards improving the net income. Employees working in this department have a lot of variance analysis and data consolidation to do. The Financial Analyst hierarchy of this department is given below
- FP&A manager-heads the department and reports to the CFO
- Senior analyst
- Entry level analyst
B) Controllership
This is another department which comes under the supervision of the CFO. It is also known as financial accounting and everyone working in this department is more or less in charge of the integrity of the balance sheet. Infact audits are a big part of the job of those employed in this department of a corporate finance company. The hierarchy within this department is given as follows
- Financial accountant
- Accountant
- Auditors
- Entry level accountants
- Entry level financial accountants
- Entry level auditors
C) Treasury
This is the most important arm of a corporate finance company and is related to cash flow and cash management. This department consists of treasury analysts whose main job is to determine the amount of cash that the company might need in the future and are responsible for financial forecasting.
Not all companies have separate treasury units as the size of treasury depends upon the size of the company. Within this department too, there is a hierarchical system follows and it has been given below.
- Treasurer-This is one of the highest positions in the field of corporate finance and anyone working at this position is expected to earn just a little less than the chief finance officer.
- Treasury analyst
- Senior level analyst
- Entry level analyst
While the above given three departments are the main segments of any corporate finance company but the following are the other two arms which hold importance
- Internal audit and risk-consists of auditors and risk managers
- Taxing-tax officers whom handle tax related issues for the organization.